You’re Still at the Idea Stage

5 days ago

3 min read

I reviewed a pitch deck recently from a founder looking to raise a $3 million seed round. Idea Stage

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The deck looked good.

It described a massive market, multiple products, an aggressive revenue target, and a detailed plan for how the company would spend the money.

But it left out the most important part.

What have real customers actually done?

How many people have used the product?

Did they complete the action the company needs them to take?

Did they come back?

Did anyone pay?

The deck didn’t answer those questions because the company was still at the idea stage.

Now, there’s nothing wrong with that.

Every successful company started with an idea. The problem begins when founders convince themselves they’re further along than they actually are.

A polished deck doesn’t move you into the build stage.

Financial projections don’t create traction.

A massive market doesn’t prove that you can acquire a single customer.

And deciding that you want to raise money doesn’t mean fundraising is the right next step.

You have to earn your way forward.

At the idea stage, your job is to prove that the problem is real and that a specific customer cares enough to do something about it.

That might mean having 50 serious customer conversations.

It might mean building the simplest possible version of the product.

It might mean getting five people to use it and seeing whether they come back.

It might mean asking one customer to pay.

Those milestones may not sound as exciting as announcing a funding round, but they’re how you reduce the risk behind the idea.

They also give investors a reason to believe you.

I see too many founders trying to jump directly from idea to raise.

They want the money to build the product, hire the team, start marketing, and then find out whether customers want it.

That’s backwards.

Funding can help you move faster, but it cannot make customers care about a problem they don’t have.

Before you ask investors to fund the journey, show them that you’ve already taken the first few steps.

You don’t need to prove the entire business.

You do need to prove enough to show that this is more than an idea in a pitch deck.

So if someone tells you that you’re still at the idea stage, don’t take it as an insult.

Take it as clarity.

Know where you are.

Figure out what needs to be true before you move forward.

Then do the work required to earn your way into the next stage.

Idea. Build. Grow. Raise.

You can move quickly.

You just can’t skip the middle.

Cheers, Steve Walsh The Hands On Angel

P.S. If you’re at the idea stage, this week’s Build with Steve is for you. I break down an actual idea-stage pitch deck and share what I’m looking for as an investor.

Watch the full episode below.

THE FOUNDER BRIEF

Practical insights for building, growing and funding your company.

By Steve Walsh · The Hands on Angel

1:1 Founder Strategy Session

Review your current approach, identify strengths and weaknesses, and receive clear next-step recommendations to ensure your company is positioned for interest from top-tier investors.

BOOK A STRATEGY SESSION